Adrian Orr resigns!
He was first appointed to the role of Reserve Bank Governor in March 2018. He was reappointed for a second five-year term effective from March 2023, which should have taken his tenure through to 2028.
Today is announced that he has resigned and will finish in the role on 31st March – the end of the financial year.
He has not given a reason, he does say that he leaves the role with consumer price inflation at target, and an economy in a cyclical recovery following the long period of Covid-related disruption. Furthermore, he says that the New Zealand financial system remains sound.
Reserve Bank Board Chair Neil Quigley said in a simple statement that it is a personal decision that he (Adrian Orr) has made. He feels it is the right time for him to make that decision.
Of course there are already plenty of rumours.
Adrian Orr was reappointed for a second five-year term in November 2022 by Grant Robinson who was the Labour Party’s finance minister, and at the time Nicola Willis (then the opposition finance spokesperson) said the decision was “a serious mistake”, calling for an independent inquiry into the bank’s monetary policy response during COVID. He has been criticised by the National Party, and in particular Nicola Willis, while in opposition and that continues after she became finance minister when the party was elected to power in 2023.
What Next? Who will replace Adrian Orr?
That is the big question.
For most people the resignation was a surprise as his tenure was to go through to 2028.
Deputy Governor Christian Hawkesby would serve as Acting Governor, effective immediately and until 31st March. The Minister of Finance would then appoint a temporary Governor from 1st April on a recommendation from the RBNZ Board, and for a period of up to six months. Hawkesby would also chair the Monetary Policy Committee.
The role comes with a good salary which we are told is more than $800,000 a year, but for those that would be considered it might be a high stress role and actually be a pay cut. We’re told that Adrian Orr was took a pay cut when he took on the role.
So now we will have to wait and see who we get as a replacement, and then to see if he/she continues on a similar path to what Adrian Orr was on.
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